Air products & Chemicals,Inc..
Your final assignment requires that you produce a fundamental opinion on your stock (Your stock is Air products & Chemicals,Inc.), and a separate technical opinion as well. Part 1: Fundamental opinion Formulate a concise, well-supported and well-organized fundamental opinion (Buy/Hold/Sell) on your stock, based on information gathered in the first four assignments and any other research that you choose to do. Your analysis must include (but is not limited to) the following: • Whether the stock is cyclical or defensive based on company/industry characteristics and Beta, and how that is relevant to your opinion given the economic and market environment. • An assessment of the company’s prospects, based on your company/industry research and consensus analyst earnings estimates. • At least one valuation method that you applied in assignment #3(will be uploaded later). (This means either constant-growth or two-stage DDM, not the simple CAPM required return calculation that you did in assignment 2). You need not reproduce the valuation work done in assignment 3, but rather simply refer to the result. (If you did the DDM valuations incorrectly, you should correct them and use the corrected result in this assignment.) Part 1 should be 2-3 pages (double-spaced) in length. You will not be graded on your opinion (we won’t know if you’re right until well after the course is over!), but rather on the analysis and thought that goes into your opinion, the extent to which it is supported by your research, and the clarity and organization of your arguments. Part 2: Technical Opinion Formulate a brief technical opinion on your stock using at least two well-recognized technical indicators of your choosing (these may be RSI and moving average, which we have gone over in detail in class.) Provide a chart of each indicator and a brief (1-2 sentences) relevant commentary on what the indicator is telling us about the stock’s prospects, in your view.
